BIR Ruling [DA-492-04]

September 16, 2004 BIR RULING [DA-492-04] Ms. Erlinda T. Sanchez 8888 Adeline Homes Rosal Street, Quirino Highway Caloocan City M a d a m : This refers to your letter dated September 6, 2004 requesting for a ruling that the proposed donation of a parcel of land together with the improvements thereon by Golden Exim Trading and Commercial Corporation in favor of Saint John of Jerusalem Knights of Malta Foundation of the Philippines, Inc. is exempt from the payment of donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997. ESAHca It is represented that Golden Exim Trading and Commercial Corporation is the absolute and registered owner of a parcel of land together with the improvements thereon located at Rodriguez Avenue, K. Hari, Quezon City and more particularly described as follows: Title Area Tax Declaration 85410 1,445 sq. m. D-051-01212 Improvement D-051-00717 Improvement D-051-00899 that on the other hand, Saint John of Jerusalem Knights of Malta Foundation of the Philippines, Inc., is a non-stock, non-profit corporation organized for the following purposes: 1. To engage in the International Philanthropic Humanitarian activities and to assist people; 2. To assist in the procurement of loans and financial assistance for the poor families and/or communities in the Philippines. The foundation main objective is to give/create livelihood projects to people beset by poverty to enable them to apply their own knowledge and skills to overcome their hardships; and 3. To create livelihood programs for the poor, assist in the creation of human settlement of homeless, home for the aged, home for the disabled, and to create livelihood for the disabled. In reply thereto, please be informed that inasmuch as the donee is a charitable institution, the aforementioned donation is exempt from the payment of donor's tax pursuant to Section 101 (A) (3) of the Tax Code of 1997, subject to the condition that not more than 30% of the said gift shall be used for administration purposes. cSHIaA Moreover, the aforesaid Deed of Donation is not subject to documentary stamp tax prescribed under Section 196 of the Tax Code of 1997, but only to the documentary stamp tax of P15.00 prescribed in Section 188 of the same Code. (BIR Ruling No. 078-03 dated March 15, 2003) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service